- BASF once again ranked as one of the world’s leading companies in sustainability
- Excellent ratings of “A” for climate protection and forest protection and “A-” for water management
The non-profit organization CDP (formerly the Carbon Disclosure Project) has rated BASF as one of the world’s leading companies in the areas of forest and climate protection and sustainable water management. BASF received an “A” rating in the categories of climate protection and forest protection and an “A-” rating for water security. This means that BASF achieved leadership status in all three categories.
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“This renewed recognition by CDP confirms our consistent commitment and the effectiveness of our sustainability strategy. BASF will continue to develop innovative solutions for its customers and pursue an ambitious agenda to contribute to a sustainable future,” said Dr. Christoph Jaekel, Head of Corporate Sustainability at BASF.
Climate protection
BASF received an “A” rating in the climate category on CDP, not only achieving leadership status but also making it onto the A list. The company has been participating in CDP’s climate protection data reporting program since 2004. Among other things, CDP evaluates the transparency of emissions reporting, the handling of climate change risks and opportunities, the climate protection strategy, and measures to reduce CO2 emissions. BASF has set itself the goal of reducing its CO2 emissions (Scope 1 and Scope 2) by 25 percent by 2030 compared to 2018, while continuing to grow production. With this goal, BASF is addressing emissions from production and energy generation, covering around 96 percent of its Scope 1 emissions and 99 percent of its Scope 2 emissions. The target is based on the emission reduction pathways outlined by the International Energy Agency (IEA) in its study “Net Zero by 2050” in line with limiting global warming to 1.5°C. BASF also intends to reduce emissions associated with its suppliers’ goods and services by 2030. Specifically, the company is aiming to reduce specific Scope 3.1 emissions by 15 percent compared to 2022 across its entire portfolio. BASF plans to achieve net-zero emissions (Scope 1, 2 and 3.1) by 2050.
Water management
This year, as in the previous year, BASF received an “A-” rating for water security. A CDP guideline stipulates that companies that manufacture products containing hazardous substances cannot receive an “A” in the water category. The CDP assessment takes into account how transparently companies report on their water management activities and how they reduce risks such as water scarcity. CDP also assesses the extent to which the product development of the companies evaluated can contribute to sustainable water management by their customers. BASF is implementing sustainable water management at all Verbund sites and at production sites in water-stressed areas by 2030. In 2024, target achievement was 65 percent.
Forest protection
BASF achieved an “A” rating for the first time for its efforts to protect forests. This rating is based on a detailed analysis of the palm oil value chain and activities that have an impact on ecosystems and habitats. Palm kernel oil and its primary derivatives are among the company’s most important renewable raw materials. Among other things, the top rating was due to BASF’s high transparency in the disclosure of deforestation-relevant raw materials and supply chains, a high level of public engagement, and activities and initiatives such as smallholder projects in the palm oil supply chain. CDP represents over 640 investors with approximately $130 trillion in assets under management. More than 31,500 companies are called upon to report in one or more categories. Around 300 companies with a purchasing volume of $6.4 trillion require their suppliers to participate in CDP reporting. CDP data is also included in the assessments of leading rating agencies. CDP scores are awarded annually on a scale from “A” to “D-”. Companies that provide no or insufficient information receive an “F” rating.